82R7250 KLA-D

By: Wentworth S.J.R. No. 23

A JOINT RESOLUTION

proposing a constitutional amendment increasing the rates of taxes imposed on gasoline and diesel fuel, adjusting those rates annually for inflation, and dedicating certain revenue from those taxes to the design, construction, and maintenance of public roadways.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 7-a, Article VIII, Texas Constitution, is amended to read as follows:

Sec. 7-a. (a) Except as provided by Subsection (b) of this section and subject [Subject] to legislative appropriation, allocation and direction, all net revenues remaining after payment of all refunds allowed by law and expenses of collection derived from motor vehicle registration fees, and all taxes, except gross production and ad valorem taxes, on motor fuels and lubricants used to propel motor vehicles over public roadways, shall be used for the sole purpose of acquiring rights-of-way, constructing, maintaining, and policing such public roadways, and for the administration of such laws as may be prescribed by the Legislature pertaining to the supervision of traffic and safety on such roads; and for the payment of the principal and interest on county and road district bonds or warrants voted or issued prior to January 2, 1939, and declared eligible prior to January 2, 1945, for payment out of the County and Road District Highway Fund under existing law; provided, however, that one-fourth (1/4) of such net revenue from the motor fuel tax shall be allocated to the Available School Fund; and, provided, however, that the net revenue derived by counties from motor vehicle registration fees shall never be less than the maximum amounts allowed to be retained by each County and the percentage allowed to be retained by each County under the laws in effect on January 1, 1945. Nothing contained herein shall be construed as authorizing the pledging of the State's credit for any purpose.

(b) The following revenue from the taxes imposed on gasoline and diesel fuel used to propel motor vehicles over public roadways shall be used for the sole purpose of designing, constructing, and maintaining public roadways:

(1) if the tax rate in effect is equal to or greater than the rate specified by Section 7-c(a) of this article, the net revenue derived from the portion of the rate that:

(A) exceeds the rate imposed on January 1, 2011; and

(B) does not exceed the rate that would be in effect under Section 7-c of this article if the rate were never raised or lowered as authorized by Section 7-c(b) of this article, but were modified annually in accordance with Section 7-c(c) of this article; and

(2) if the tax rate in effect is less than the rate specified by Section 7-c(a) of this article, the net revenue derived from the portion of the rate that exceeds the rate imposed on January 1, 2011.

SECTION 2. Article VIII, Texas Constitution, is amended by adding Section 7-c to read as follows:

Sec. 7-c. (a) Except as provided by Subsections (b) and (c) of this section, the state shall impose the taxes authorized by Chapter 162, Tax Code, or its successor, on gasoline and diesel fuel at the rate of _____ cents for each net gallon or fractional part on which the taxes are imposed.

(b) The legislature by general law may raise or lower the rates of the taxes or modify or repeal the taxes described by Subsection (a) of this section.

(c) Not later than August 1 of each year, the comptroller shall revise the rates of the taxes authorized by Chapter 162, Tax Code, or its successor, on gasoline and diesel fuel in effect on August 1 by applying a percentage change to the rates equal to the percentage representing the most recent annual change in the consumer price index for all urban consumers for all items and for all regions of the United States combined, as determined by the United States Department of Labor, Bureau of Labor Statistics. If that index is discontinued or superseded, the comptroller shall use a similar index selected or calculated by the comptroller. A revised tax rate takes effect on the following September 1.

SECTION 3. The following temporary provision is added to the Texas Constitution:

TEMPORARY PROVISION. (a) This temporary provision applies to the constitutional amendment proposed by the 82nd Legislature, Regular Session, 2011, increasing the rates of taxes imposed on gasoline and diesel fuel, adjusting those rates annually for inflation, and dedicating certain revenue from those taxes to the design, construction, and maintenance of public roadways.

(b) The changes to Article VIII of this constitution made by the amendment apply to taxes imposed on or after January 1, 2012.

(c) This temporary provision expires January 1, 2013.

SECTION 4. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 8, 2011. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment increasing the rates of taxes imposed on gasoline and diesel fuel, adjusting those rates annually for inflation, and dedicating certain revenue from those taxes to the design, construction, and maintenance of public roadways."